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Chapter 21 Holder in Due Course and Defenses
After reading this chapter, you should understand the following:
- What a holder in due course is, and why that status is critical to commercial paper
- What defenses are good against a holder in due course
- How the holder-in-due-course doctrine is modified in consumer transactions
In this chapter, we consider the final two questions that are raised in determining whether a holder can collect:
- Is the holder a holder in due course?
- What defenses, if any, can be asserted against the holder in due course to prevent collection on the instrument?